With the Regulations on the Reform of National Tax and Local Tax (the “Reform”) adopted on 20 July 2018 (to become effective on 1 January 2019), the responsibility to collect social insurance premiums (i.e. for basic pension insurance, basic medical insurance,...

In June 2018, the Standing Committee of the National People’s Congress proposed major amendments to the PRC Individual Income Tax Law (IIT Law). These changes are expected to take effect in October 2018, with full implementation of the revised law planned for January...

In late 2016, China introduced a new classification system for expats that want to work in China. The system categorizes foreign applicants into three categories (A, B and C), and established a point system with points awarded for various qualifications including age,...

The Labor Contract Law provides an exhaustive list of situations under which an employer may lawfully dismiss its employee. It depends on the situation whether severance pay is required; severance pay (or termination pay) is the amount an employer has to pay to an...

Over the past few years, Chinese tax authorities have been focusing increasingly on secondment (also referred to as dispatchment) arrangements of foreign companies in China. Under a secondment arrangement a foreign company assigns a foreign manager to its Chinese...

In recent weeks, several of our clients in Shanghai were raided by the local Public Security Bureau (“PSB”, China’s police). The PSB was looking for evidence of these companies hiring foreigners or foreign interns without the proper papers. Chinese laws...